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8th Pay Commission: The question on every central government employee's mind these days is: when will the 8th Pay Commission arrive? The 10-year cycle of the 7th Pay Commission ends on December 31, 2025.  According to this, the new pay commission should be implemented on January 1, 2026.

But have you ever wondered why the pay commission is always implemented in January? Why can't the government implement it in June or October? This is not a coincidence, but a 52-year-old, well-thought-out rule, directly connected to the Dearness Allowance (DA). This rule was established in 1973, and every government since then has followed it. However, it's not commonly discussed, so it has remained a secret.

Let's unveil this 52-year-old secret today and understand why the auspicious time for your salary increase always falls in January.

1. Flashback to 1973: When 'January' became the 'Lucky Day'
52 years ago, before 1973, there was no fixed pattern for increasing the salaries of central government employees. Governments increased salaries at their convenience. But the Third Pay Commission changed this entire system.

Harishankar Tiwari, General Secretary of the All India Accounts and Audit Committee, explains, "In 1973, the Third Pay Commission recommended that salary revisions should be done every 10 years and the implementation date should be January 1st. The government at that time accepted this. There was a very significant economic and logical reason behind this – the calculation of Dearness Allowance (DA)."

So why did the government do this?

The answer lies in the method of calculating DA. The Dearness Allowance is determined based on the 12-month average of the All India Consumer Price Index (AICPI-IW).

DA Cycle: The government increases DA twice a year (from January 1st and July 1st). The January Math: The date of January 1st provides a clear 'cut-off date'. The year ends on December 31st, and the government has complete and accurate inflation data for the previous 12 months. This makes it easier to calculate how to adjust the old dearness allowance (DA) in the new pay scale.

2. DA is 'Adjusted', Not 'Merged': Why is January Important?
The biggest task of the Pay Commission is not just to increase salaries, but to change the salary structure. Whenever a new Pay Commission comes into effect, it combines the old basic pay and all the dearness allowance accumulated up to that date to create a 'new basic pay'. After this process, the salary meter is 'reset' to zero (0%).

Let's understand this with an example:

The 7th Pay Commission came into effect on January 1, 2016. By that time, the employees' DA had reached 125%. The commission combined the old basic pay and the 125% DA to create a new basic salary and set the DA to 0%.

If this work were done in the middle of the year (like in June), the DA calculation would be incomplete and complicated. Therefore, January 1st is the cleanest date, when all the accounts for the previous year have been settled.

Harishankar Tiwari says, "The January timing is beneficial for both the government and the employees. It avoids any confusion in adjusting the DA, and it also makes it easier for the government to estimate its additional salary expenses."

3. So what will happen in the 8th Pay Commission?
Now, let's come to the biggest question - what will happen in the 8th Pay Commission? The 1973 rule will apply here as well.

Effective Date: The 8th Pay Commission will technically be considered effective from January 1, 2026.

Delay in Formation: The government has not yet constituted the commission. After its formation, it takes 18-24 months for the report to be submitted. When will the money be received? According to Harishankar Tiwari, "The government may implement this in mid-2027 or 2028, so that it can reap the political benefits in the 2029 Lok Sabha elections. But whenever the money is received, it will be effective from January 1, 2026." This means that employees will receive a substantial amount of arrears for 2 to 2.5 years in one lump sum.

4. The Math of Salary Calculation
If we assume that the government adopts a fitment factor of 1.92 (which seems most logical given the current economic conditions), then the salary will increase as follows:

Minimum Basic Pay: Currently, it is ₹18,000. Multiplying it by 1.92 will make it ₹34,560.
What about DA? This ₹34,560 will include all your DA up to January 2026 (approximately 60-65%). This means that in the new salary slip, the DA will start again from 0%.

A 50-Year-Old Tradition That Will Yield Substantial Benefits
So now you understand that the Pay Commission's 'January connection' is not a coincidence, but a well-thought-out system established in 1973. The same tradition will be followed in the 8th Pay Commission as well. Even if it takes until 2028 for you to receive the increased salary, whenever it comes, it will be effective from January 1, 2026. And this wait will surely give you a 'jackpot' in the form of lakhs of rupees in arrears.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.